AirAsia's shareholders may see special dividend in 4Q when AAC stake sale concludes

KUALA LUMPUR (Aug 30): AirAsia Group Bhd shareholders can look forward to receiving a special dividend in the fourth quarter of 2018 as the disposal of its aircraft leasing business, Asia Aviation Capital Ltd (AAC), is expected to conclude then.

"We have received US$501 million for the aircraft leasing deal under AAC... We will announce a special dividend when the transaction on AAC concludes in 4Q 2018," its group chief executive officer Tan Sri Tony Fernandes said in a statement to announce the airline's financial results for the second quarter ended June 30, 2018 today.

In March, AirAsia had announced a deal to sell its AAC to aircraft investor BBAM for US$1.18 billion. CIMB Investment Bank Bhd had estimated then that after taking into account AirAsia's debt prepayment and costs, a special dividend per share of 75 sen may be paid by the airline.

Fernandes also noted the airline has concluded the remaining 25% sale of AAE Travel Ptd Ltd (Expedia) for US$60 million on Aug 14. The total gain on sale for the 50% stake in Expedia was US$131 million.

"This is yet another example of us creating valuable assets and monetising them at more than 10 times of our initial capital invested.

"We continue to create valuable assets and monetise our investments in our non-core businesses as and when a good offer is placed before us,” he added.